Which finance for a new company

2 min read

Little historyThe hurdle

Asset-backed helpsThe workaround

Build a recordThe path

The young-company hurdle

Lenders like a trading history, so a new company faces a hurdle: less evidence of affordability and creditworthiness. But youth is not a bar. Asset-backed finance (asset or invoice finance) leans on security rather than history, and lenders that assess recent trading can lend to a young company that is already trading well, even without years of accounts. See our answers on a new-company loan and whether a new business can borrow.

The routes for a new company

Route	Why it fits a young company
Asset finance	The asset is the security, not your history
Invoice finance	Funds against invoices once you're trading
Affordability-based loan	Judged on recent trading, not years of accounts
Startup grants / equity	For pre-revenue ventures

Once trading, asset finance, invoice finance and affordability-based loans open up. Pre-revenue, grants or equity may fit first — see loan vs grant for startups and the startup loan guide.

Building borrowing power

Every month of clean trading, filed accounts and well-serviced borrowing strengthens a young company's standing. Start with an affordable facility, service it impeccably, and the options widen. Avoid over-borrowing on optimistic early revenue — match the facility to what the company can genuinely service now. See affordability.

The Credicorp view

Credicorp assesses limited companies on recent trading rather than years of accounts, which can help a young but already-trading company that can service a facility — no personal guarantee. Service it well and your borrowing power grows. See our business loans or register to apply. Educational content, not financial advice.

Frequently asked questions

Can a new company get business finance?

Yes, though options are narrower without a track record. Once trading, asset finance and invoice finance lean on security rather than history, and lenders that assess recent trading can lend to a young company performing well. Pre-revenue, startup grants or equity may fit first.

What finance is easiest for a young business?

Asset-backed options — asset finance and invoice finance — tend to be most accessible, because the security reduces reliance on trading history. An affordability-based loan judged on recent trading rather than years of accounts can also work for a young company already trading and able to service it.

How does a new company build borrowing power?

Through clean trading, accounts filed on time and well-serviced borrowing. Starting with an affordable facility and servicing it impeccably strengthens the company's standing month by month, widening the options. Avoid over-borrowing on optimistic early revenue — match the facility to what you can genuinely service now.